On this episode of The nestegg Podcast, the CEO of Industry Super Australia, Bernie Dean, shares his insights into the impact of COVID-19 on super funds.

"
["fulltext"]=>
string(1413) "

Bernie joins host Grace Ormsby to unpack how the economic downturn has been affecting different demographics, why many in the older age bracket are experiencing increased levels of anxiety, and what those people can do to preserve their nest egg and minimise their losses.

Bernie also delves into Industry Super Australia’s stance towards accessing superannuation early as part of the government’s stimulus measures, whether now is a good time for people with the means to contribute extra to their super, and industry fund plans for a road to recovery for both their members and the national economy.

Queensland government takes on retirement village contracts

Queensland government takes on retirement village contracts

The Queensland government has passed legislation which will “see a new era of fairness” in the retirement sector, the Minister for Housing and Public Works has said.

Mick de Brenni said the amendments to the sunshine state’s Retirement Village Act passed this week were “landmark reforms”.

“The Palaszczuk government introduced these reforms after consultation with industry and operator groups, consumer advocates, resident representatives and seniors groups, and retirement village residents and manufactured home owners.

“These changes will ensure everyone is treated fairly, giving seniors support when they are planning retirement, and after they retire,” he continued.

The changes include a requirement that all ongoing fees and charges are “clearly declared upfront” and that potential tenants and their families have a minimum 21 days to evaluate retirement village contracts prior to signing.

Advertisement

Advertisement

Additionally, the amendments aim to promote "simplified, standard contracts" and limit the time it takes for the payment of residents' exit entitlements.

Under the new act, village operators and residents will also have to adhere to the newly enforceable behaviour standards.

“The Palaszczuk government has also set aside $1 million over two years to provide advocacy and support through peak groups and resident associations to assist retirement village residents, manufactured home owners and residents of boarding houses," Mr de Brenni said.

“The department will work with five key organisations to confirm how best to invest this funding – Association of Residents of Queensland Retirement Villages (ARQRV), Associated Residential Parks Queensland Inc (ARPQ), the Council on the Ageing (COTA), National Seniors Australia (NSA) and Tenants Queensland (TQ).”

The president of the Association of Residents of Queensland Retirement Villages, Judy Mayfield said the amendments had resulted in "greater clarity".

Further, that clarity "will assist potential residents to more clearly understand the terms and conditions of the agreement they are signing,” Ms Mayfield said.

“It will ensure that staff and village operators are held accountable for any misconduct in the treatment of residents and provide for more clarity to residents on the day-to-day financial management of their village," she continued.

“A wide range of safeguards have been put into place to ensure that residents get a "fair go" and many inequities in the current legislation have now been rectified.”

The legislation received bipartisan support, with opposition housing spokesman Stephen Bennett welcoming the "major reforms", saying they would "protect our most vulnerable residents".

"We have listened to our senior citizens and acted in their best interests to ensure the system is fairer."

Why are retirement village contracts so complex?

According to the senior policy officer at the Consumer Action Law Centre, Katherine Temple, retirement village contracts can be so complex that Australians should seek legal advice before signing them.

Speaking to Nest Egg, she noted that some contracts can be more than 100 pages in length and said: "I would suggest to residents and their families to get legal advice before moving into a retirement village.”

Additionally, Ms Temple said the “other big trap” is understanding that many retirement villages operate under a loan-lease purchasing arrangement. This means that tenants are not actually purchasing property, rather the licence to reside in the village.

“That's not obvious a lot of the time in the sales pitches that people hear that talk about buying into a retirement village. You're not buying a unit, you’re just buying the right to live there and that's very different and so they can impose a lot of restrictions on what you can do while you live in the village.”

Queensland government takes on retirement village contracts

Lucy Dean

Last Updated: 14 May 2020
Published: 27 October 2017

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates

Rate the article

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy